He said the Defence Ministry had issued the Letter of Intent to the BHIC for the construction of the second-generation LCS, using local expertise.

It will involve upgrading the combat ships' weapon specifications from cannon to torpedoes as stipulated by the RMN, he told reporters after the conferment of First Admiral (Honorary) rank to Perak Menteri Besar Datuk Seri Zambry Abdul Kadir at the Defence Ministry here.

Ahmad Zahid said local expertise had the capabilities to produce the LCS following a series of discussions on the foreign shipping companies' integration system, including the transfer of technology.

He said the selection of weaponry would take into consideration the patrol operations in coastal areas and the South China Sea, including Sabah and Sarawak waters.

The minister also hoped that the BHIC would further secure construction jobs in other Asean member countries through the Asean Defence Collaboration.

With the consent from Yang di-Pertuan Agong, Zambry became the first menteri besar ever conferred with the rank of First Admiral (Honorary).

The conferment, which took effect on July 1, was in appreciation of his contributions in the development of the RMN and its staff at the naval base in Lumut.